Within 24-hours of forwarding relief in purchase of sugarcane for new sugar mills or for those increasing their existing capacity under the new provisions of Sugar Industries Co-Generation and Distillation Promotion-2013, state government on Saturday now extended to compensate interest on loans taken under capital investment.

The move was made to increase sugar production in the state as well as to facilitate the farmers for better and high return towards their cane crops.
According to official communiqué released by principal secretary (Sugar Industries and Sugar Development), Rahul Bhatnagar here on Saturday evening, he claimed that will compensate 05. percent of the interest taken for capital investment like installing of machineries, plants etc for new sugar mills or for increasing production of the existing ones.

He said that this relief will be forwarded for five years on the loans taken from banks, financial institutions and State Development Fund. He said that to take the benefit of the above scheme, the mill owner had to make claims before Cane Commissioner on proper format. However, he said that the benefit will be only given to those mill who had ealier not taken any advantage of relaxation of the government schemes for installing of machines and plants or other capital expenditure.

On Friday Rahul Bhatnagar said that they will provide relief in purchase of sugarcane for five years to the registered company or units from the date of start of commercial production. He said that this facility will be also forwarded for those mills who will increase their capacity. For calculating the production, the best output of the organization in the last five years or whose production is more than 80 per cent of the mentioned output capacity will be taken. He said that after taking the above fact in consideration, they will give relief to the mills who claimed to have increase the output. However, he said that the relief should not be more than 75 crores. The companies could claim above relief on every quarter on the laid form and it’s disposal will be made by the government within a months time.